Increasing number of retirees in debt: survey

VANCOUVER (NEWS 1130) – People across this country are known to carry plenty of debt but a new survey shows it’s also a big problem for retirees.

A new survey shows one-quarter of those finished working have non-mortgage debt which includes unpaid credit cards.

  • 66 per cent have unpaid credit cards
  • 26 per cent are making car payments
  • 7 per cent have unpaid health expenses
  • 7 per cent owe money on holiday expenses or vacation property
  • 6 per cent haven’t paid off home renovations

 

It’s not the idea many of us have of retirement, but according to this survey two-thirds of those who responded are still carrying debt during their golden years.

And that figure is even higher in BC, where four out of five retirees carry a credit card balance. “The other thing we found is that a growing number of Canadians are actually dipping into their retirement savings before they retire and that starts to sound off some alarm bells in terms of whether they’re going to get ready to retire when they think at 65 or 70 — whatever age,” explains Tom Reid with Sun Life Financial, which commissioned the Ipsos survey.

“I think the importance of having a plan, reaching out and seeking financial advice — I think it’s probably never been more important and the evidence certainly supports that in terms of the survey.”

Reid suggests it’s also important to make the right investments and to define an adequate contribution plan to your RRSPs and TFSAs before retiring.

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